Lelde Smits: Multicom Resources is a mining company that is developing a vanadium asset here in Queensland. Why are you bullish about the prospects for vanadium?

Shaun McCarthy: At the moment, we only really have to look at the vanadium price and the fact that it’s gone up over 500% in the last few years to at least get a little bit excited. But it’s the supply and demand dynamic we are seeing that is really underpinning that change in price.

Lelde Smits: That is a huge gain that you are talking about. What factors have underpinned the recent gains in the price of vanadium?

Shaun McCarthy: Quite simply, over 91% of the world’s vanadium is used in steel production. We’re seeing the supply of vanadium from China, largely. China is producing half the world’s supply, but we’re seeing that supply constrained through environmental regulations. What we are also seeing at the same time is demand going up, driven by economies such as China where they are increasing the amount of vanadium and are using it in every tonne of steel. Uses such as construction reinforcement bar and other uses for steel such as in aircraft, electric vehicles and beyond. The outlook for vanadium in the demand space is quite exciting.